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JOINT CIRCULAR No

JOINT CIRCULAR No. 1/1998/TTLT/CN-NV OF JANUARY 13, 1998 GUIDING THE MANAGEMENT OF COMMERCIAL SUPPLY OF INDUSTRIAL EXPLOSIVES

Pursuant to Decree No.2-CP of January 5, 1995 of the Government defining the commodities and services banned from commercial business and the commodities and services allowed for commercial business under certain conditions on the domestic market;

Pursuant to Decree No.47-CP of August 12, 1996 of the Government on the management of weapons, explosives and support instruments;

Pursuant to Decree No.17-CP of December 23, 1992 of the Government on the management of special businesses;

Pursuant to Decree No.27-CP of April 20, 1995 of the Government on the management, production, supply and use of industrial explosives;

The Ministry of Industry and the Ministry of the Interior hereby jointly guide the management, commercial supply of industrial explosives as follows:

I. GENERAL PROVISIONS

1. Explosives used for industrial and other civilian purposes (called industrial explosives for short) include: explosives and exploding accessories which must be in the form of finished products.

- Explosive is a special chemical substance or a mixture of special chemical substances, which, when being under certain physical, chemical or thermal actions, shall cause chemical reaction(s) turning such special chemical substance of mixture into exploding energy and destroying surrounding environment.

- Exploding accessories include delay fuse, fuse, detonator, igniter and others.

2. Explosives self-produced or obtained from bombs, shells or mines, which have not been processed, quality-tested or allowed for use by competent State bodies, shall not be considered industrial explosives.

Chemicals and semi-finished products to be processed into explosives, which themselves cannot burst into flame and explosion during the process of production, transportation and separate storing and preservation, shall not be considered the industrial explosives yet.

3. Commercial supply of industrial explosives includes such activities as purchase and sale, export, import, delivery and receipt, transportation, storing and preservation of industrial explosives.

4. The examination, test and destruction of poor-quality industrial explosives shall comply with the regulations on safety in the preservation, transportation and use of explosives and current relevant provisions and standards.

5. Scope of application: All enterprises and organizations, including the armed forces' enterprises and organizations engaged in economic activities, and Vietnam-based foreign enterprises and organizations engaged in the purchase, sale, export, import, transportation, storing, preservation or production of industrial explosives on Vietnamese territory (including areas under Vietnam's sovereignty) shall have to comply with the provisions on the management of industrial explosives and this Joint Circular.

6. Those enterprises specialized in the production and use of industrial explosives shall have to abide by Decree No.27-CP of April 20, 1995 of the Government, Circular 11-TT/CNCL of March 13, 1996 of the Ministry of Industry guiding the implementation of the above-mentioned Decree, and this Joint Circular.

II. CONDITIONS REQUIRED FOR COMMERCIAL SUPPLY OF INDUSTRIAL EXPLOSIVES

A. Conditions on the business subjects

Subjects conducting business in the supply of industrial explosives, which are State enterprises meeting all conditions prescribed in Decree No.2-CP of January 5, 1995, recommended by the Ministry of Industry and Ministry of Defense and assigned by the Prime Minister the task of supplying industrial explosives, shall have to fully meet the conditions for conducting special businesses as provided for in Decree No.17-CP of December 23, 1992 of the Government and this guiding circular.

B. Conditions on material and technical bases

1. Enterprises engaged in the production or commercial supply of industrial explosives must have enough necessary material and technical bases commensurate with their respective tasks, business scale, which meet the requirements of the regulation on safety in the preservation, transportation and use of explosives and current relevant provisions and standards on such things as storehouses, transport means, specialized equipment, protection facilities, means to prevent and combat fire and explosion, lightnings and stray electric currents.

2. The selection of locations for industrial explosive depots must comply with the State's ordinances, decrees, regulations and standards related to industrial explosives and be approved by competent agencies.

The construction of industrial explosive production projects (Class A projects) and other industrial explosive-related projects must comply with Decree No.42-CP of July 16, 1996 of the Government promulgating the regulations on the management of investment and construction, Decree No.92-CP of August 23, 1997 of the Government supplementing a number of articles of the Regulation on the management of investment and construction, and with current relevant provisions, regulations and standards.

3. The fixed places for loading and unloading industrial explosives shall have to meet the safety and anti-fire and explosion requirements and be permitted by the People's Committees of concerned provinces or cities directly under the Central Government. If a loading and unloading place is a port which is not under the local management, it must also be permitted by a competent communication and transport body; if it lies inside a construction or mining site, it is considered a mine exploding area and must be agreed upon by the Police and State Inspectorate regarding the safety of the locality where mine explosions are conducted (according to Circular No.11-CNCL of March 13, 1996 of the Ministry of Industry).

4. Transport means and specialized loading and unloading equipment defined in Article 31, Chapter IV of the Regulation issued together with Decree No.47-CP of August 12, 1996 of the Government shall include trucks of various types, explosive transporting and mixing vehicles (mobile production vehicles), tugboats and barges, sea-going vessels, cranes, lifts..., which must be equipped with specialized means for fire and explosion prevention and fighting.

Transport means must be given permits for operation by competent agencies and permits for transportation of industrial explosives by fire-police offices.

- It is forbidden to transport industrial explosives by self-loading trucks, trailers, passenger cars; electricity-, gas or coal-operated vehicles.

5. Households allowed to use industrial explosives and enterprises permitted to conduct business in the supply of industrial explosives may transport them by themselves or hire other enterprises' means for the transportation of industrial explosives by land road, waterway, railway or by air. Such transport means must fully meet the technical and safety requirements defined in the regulation on safety in storing, transport and use of explosives and relevant regulations.

- Owners of transport means involved in the transportation of industrial explosives shall, from the time the fire police office conducts the inspection thereof and record in the report then certifies their qualifications for the transport of industrial explosives, have to fully maintain the safety conditions throughout the process of transportation and within the time-limit stated in the report (if any). The transport means owners and the goods owners shall have to promptly report to the fire police office that has issued permits for the transportation of industrial explosives on any change of the transport means that may affect the safe transportation of the industrial explosives. They shall have to bear full responsibility for all safety requirements of the means of industrial explosive transport.

C. Conditions on industrial explosive suppliers

1. The leaders and heads as well as deputy heads of sections and departments, cadres and employees of the enterprises directly involved in the receipt, storing and preservation, transport, testing or commercial supply of industrial explosives must be Vietnamese citizens aged from 18 upwards, having good health, certain professional level and enough qualifications for conducting special businesses under Decree No.17-CP of December 23, 1992 of the Government and Circular No.03/TT-BNV of March 27, 1993 of the Ministry of the Interior guiding the implementation of such Decree.

2. They must be given lectures and examinations on knowledge about the management of commercial supply of industrial explosives, regulations on safety in storage and preservation, transport and use of explosives, and be granted the certificates of eligibility for the commercial supply of industrial explosives by the Ministry of Industry.

a/ For leaders of the enterprise:

- The director must have at least one university diploma in such fields as mining, chemicals, weapons and ammunitions, rocket chemicals technology, explosives, or economics and have enough officialdom criteria provided for by the State.

- The deputy director in charge of technical matters must absolutely necessarily be a university graduate in one of the following fields: mining, chemicals, weapons and ammunitions, rocket chemicals technology, or explosives.

b/ For heads and deputy heads of sections and departments of the enterprise: They must have university diplomas and enough qualifications for being State officials.

Particularly, the head of the technical section and the technical safety inspector must be the engineer in one of the following majors: mining, chemicals, weapons and ammunitions, rocket chemicals technology, explosives.

c/ For leaders of the factories, branches, agents and representative offices, attached to the enterprise: They must have university or intermediate vocational school diplomas and working seniority of five (5) years or more in the industrial explosives supply service.

Particularly, the deputy directors, heads of the technical sections and technical safety inspectors must absolutely necessarily be the engineer in one of the following fields: mining, chemicals, weapons and ammunitions, rocket chemicals technology, or explosives.

3. For the employees of enterprises and their attached factories, branches, agents as well as representative offices, with direct involvement in industrial explosives, including:

- Warehouse keepers and their managerial personnel.

- Security and preservation personnel.

- Ship masters, operators of transport means (automobiles, locomotives, sea-going ships, barges, cranes,...)

- Loading and unloading workers and escort personnel,

- Testing personnel.

- Suppliers.

They must, apart from their professional diplomas or certificates, have the following papers:

- The certificate of their study and examination on knowledge about the regulations on safety in the storing preservation, transport and use of industrial explosives granted by competent agencies under the current regulations.

- The certificate of their training and examination on knowledge about fire and explosion prevention and fighting granted by the provincial/municipal fire police offices or the Fire Police Department.

4. For leaders, managerial cadres and employees of the Defense Ministry's enterprises involved in the commercial supply of industrial explosives, they shall be examined and granted certificates according to Items a, b and c of Point 2 above by the Defense Ministry, and the copies of their certificates and a list of them shall be sent to the Ministry of the Interior and the Ministry of Industry for coordination in the management.

III. MANAGEMENT OF BUSINESS ACTIVITIES

1. Enterprises engaged in the commercial supply of industrial explosives are entitled to set up their factories, branches, agents and representative offices throughout the country so as to supply industrial explosives directly to enterprise or organization-users. They must bear responsibility for all activities of their branches and agents and must photocopy and send to the Ministry of Industry and the Ministry of the Interior the decisions on the establishment thereof for monitoring and management.

2. The enterprises and organizations shall only be entitled to sell industrial explosives to enterprises and organizations which have been granted permits to use industrial explosives by competent bodies in accordance with Circular No.11-TT/CNCL of March 13, 1996 of the Ministry of Industry guiding the implementation of Decree No.27-CP of April 20, 1995 of the Government.

Enterprise and organizations that use industrial explosives shall, before participating in bidding, have to obtain permits for the use of industrial explosives from the Ministry of Industry and certificates of security and order qualifications from the Ministry of the Interior.

3. Units permitted to use industrial explosives shall be allowed to buy them at units licensed to conduct business in the supply of industrial explosives. If they have not used them up or have not used them, they shall only be entitled to resell such to the units that sold them the explosives, not to any other subjects. The purchase and sale thereof must signed in contracts and economic contracts shall be liquidated in accordance with the provisions of law. Then, the commercial supply units shall send copies of the contracts and the contract liquidation to the Ministry of Industry and the Ministry of the Interior for inspection and supervision.

Special cases must be considered and permitted by the Ministry of Industry and the Ministry of the Interior.

4. Enterprises engaged in the production and commercial supply of industrial explosives shall have to send their plans on the production, supply, export, import and national reserve (for assigned units) of industrial explosives before the 20th of August every year to the Ministry of Industry, the Ministry of Planning and Investment and the Ministry of the Interior for sum-up and balance with the plan on the supply of industrial explosives for the national economy, and for submission to the Prime Minister for decision. If any change or readjustment is made to a plan after that deadline, the concerned enterprise shall have to send a document on the plan readjustment to the Ministry of Industry and concerned ministries. Every quarter, six months, nine months and year, the enterprises engaged in the production and/or commercial supply of industrial explosives shall send reports on the production, commercial supply, export, import and unsold amount of, industrial explosives to the Ministry of Industry, the Ministry of Planning and Investment, the General Department of Statistics and Ministry of the Interior for monitoring and management.

5. Enterprises engaged in the production and/or commercial supply of industrial explosives must ensure the adequate and stable production and supply of industrial explosives according to the quantity, types and quality stated in the signed contracts. Enterprises which have contracted to buy industrial explosives shall have to buy the whole volume they have ordered. In case of any change in the contracts, the agreement must be reached between contracting parties. Within 14 days after a contract is signed or readjusted, an enterprise engaged in the commercial supply of industrial explosives shall send a copy of the contract (including export or import) to the Ministry of Industry and the Ministry of the Interior for monitoring and supervision.

6. Enterprises engaged in the production and/or commercial supply of industrial explosives shall have to register with the Government Pricing Committee the selling prices of industrial explosives in the form of finished products at the place of delivery for each period of time.

7. Enterprises permitted to produce or supply industrial explosives shall have to register and declare the payment of taxes and other State budget remittance under tax laws and current regulations. The purchase and sale of industrial explosives among enterprises must be made with invoice in a separate form issued exclusively for industrial explosives by the General Department of Taxation.

8. Enterprises engaged in the production or commercial supply of industrial explosives shall have to open a system of books to record fully all activities related to the purchase, sale, export, import, unsaleability, destruction of industrial explosives, to keep dossiers from the beginning, including warehouse cards, warehouse input and output papers, business invoices, which all must be well preserved and filed in accordance with the regulations. They shall have to fully observe the regime of statistics and reporting, auditing, settlement of final accounts in accordance with the ordinance on statistics and accounting and guiding documents of the Ministry of Finance and the Ministry of Industry as well as books and forms for reporting on the security and order maintenance at establishments conducting special businesses, as guided by the Ministry of the Interior.

IV. EXPORT AND/OR IMPORT OF INDUSTRIAL EXPLOSIVES

1. On the basis of ensuring the adequate supply of industrial explosives for the national economy, the Ministry of Industry shall every year coordinate with the Ministry of Planning and Investment, the Ministry of the Interior and concerned ministries in considering the requests of enterprises engaged in the commercial supply of industrial explosives, synthesize and balance them for submission to the Prime Minister to decide the quotas for import and/or export of industrial explosives. The Ministry of Trade shall issue papers permitting enterprises with the industrial explosive import - export permits to import and/or export industrial explosives on the basis of quotas given by the State.

Within 15 days from the date of issuance of the industrial explosive import and/or export permits, the Ministry of Trade shall send their copies to the Ministry of Industry and the Ministry of the Interior for monitoring and supervision.

- If enterprises permitted to conduct business in the supply of industrial explosives wish to export and/or import them, they must make a report requesting the export and/or import of industrial explosives and stating clearly the customers' demand as well as economic contracts with the producers and the users. Such reports and contracts must be sent to the Ministry of Industry and the Ministry of Planning and Investment before the 20th of August every year together with the following year's plan. Enterprises which fail to submit all the above-mentioned papers shall be considered having no export and/or import demands.

- The export, and/or import of industrial explosives must comply with the State's current relevant regulations on import and export.

2. Some principles on the import of industrial explosives and raw materials for the production thereof:

a/ Industrial explosives which have been produced or processed in Vietnam with stable quantity, quality, types, safety and prices not higher than the import prices, have been allowed by the Ministry of Industry to be registered and put on the list of industrial explosives to be produced and used in industrial production every year and which have been agreed by the users to buy through economic contracts, are not allowed for import.

b/ Industrial explosives or raw materials used for the production of industrial explosives in the form of finished products, which are allowed for import, include:

- Single pure raw materials or explosives to be processed into industrial explosives of different kinds in the country (TNT, pure intramino in spongy grains, crystals and powder used exclusively for the production of explosives, chemicals for the production of exploding accessories...).

- Industrial explosives and chemicals which have not yet been produced or processed in Vietnam but are very necessary for production and construction (high-energy explosives with great destructive power, explosives of special kinds used in special construction projects, seismological explosives used for oil and gas exploration and exploitation...).

- Industrial explosives which have been produced or processed in Vietnam but failed to meet the quantity, type, quality and price requirements of the domestic users.

3. Eligible industrial explosive export/import enterprises are those which meet all conditions for being granted export/import permits under Decree No.33-CP of April 19, 1994 of the Government on the State management over export/import activities and regulations of the Ministry of Trade and which have been granted the certificates of eligibility for commercial supply of industrial explosives by the Ministry of Industry and the certificates of eligibility for special businesses by the Ministry of the Interior.

Special cases shall be permitted in writing by the Government and have to comply with the provisions of law on the management of industrial explosives.

4. Enterprises permitted to export and/or import industrial explosives shall have to report on the quantity and types of the industrial explosives imported every quarter, 6 months, 9 months and the whole year according to prescribed forms and send them to the Ministry of Industry, the Ministry of Trade and the Ministry of the Interior for monitoring and supervision.

V. PROCEDURES TO APPLY FOR CERTIFICATES OF ELIGIBILITY TO CONDUCT COMMERCIAL SUPPLY OF INDUSTRIAL EXPLOSIVES AND SPECIAL BUSINESSES

1. Before compiling the dossiers of application for certificates of eligibility to conduct the commercial supply of industrial explosives, enterprises shall have to fill in the procedures to apply for certificates of eligibility to conduct special businesses as provided for in Decree No.17-CP of December 23, 1992 of the Government and Circular No.03-TT of March 27, 1993 of the Ministry of the Interior on the management of special businesses.

2. Enterprises shall have to compile dossiers and submit them to the Ministry of Industry for considering the granting of certificates of business eligibility.

a/ Such dossier includes:

+ On the part of the enterprise:

- The application for business eligibility certificate, signed and sealed by the director of the enterprise.

- The copy (notarized) of the Prime Minister's decision on the establishment of the enterprise, enclosed with a list of its attached factories, branches, agents and representative offices.

- The enterprise's statute of operation, approved by the competent level.

- The copies (notarized) of the decision on capital allocation of the agency in charge and the certificate of the enterprise's legal capital.

- A list of specialized means of transport.

- A brief history of the industrial explosive testing establishment (if any), the certificate of operation granted by the State standardization-quality-measurement body.

- The list of all the enterprise's leading officials, managerial cadres and employees directly involved in the transport, preservation and commercial supply of industrial explosives.

- The copy (notarized) of the certificate of security and order qualifications for conducting special businesses, granted by the Ministry of the Interior.

+ Directors, deputy-directors, heads and deputy heads of sections and departments, safety technique inspectors of the enterprise and its attached units:

- The curriculum vitea of the enterprise owner.

- They copy of his/her academic diploma(s).

- The copy of individual's certificate of commercial supply of industrial explosives, granted by the Ministry of Industry; if the enterprise is under the General Department of Defense Industries and Economy, such certificate is granted by the Ministry of Defense.

b/ Within 20 days from the date of full receipt of the dossiers, the Ministry of Industry shall have to organize the examination; if the enterprise is qualitied, it shall grant the certificate of business eligibility to the enterprise. After being granted the certificate of eligibility for commercial supply of industrial explosives, the enterprise shall have to fill the procedures applying for the business registration paper or for the regranting of the business registration paper.

In case of ineligibility, the Ministry of Industry shall have to reply in writing.

2. The Ministry of Industry shall coordinate with the Ministry of Defense and the Ministry of the Interior in examining the dossiers and business conditions of the enterprise engaged in the commercial supply of industrial explosives which are under the General Department of Defense Industries and Economy; if it is qualified, the Ministry of Industry shall grant the certificate of business eligibility to the enterprise.

3. Enterprises applying for business eligibility certificates shall have to pay fees according to the current regulations of the State.

VI. INSPECTION AND HANDLING OF VIOLATIONS

1. On the basis of their respective functions and tasks, the Police, Industry and Trade agencies shall conduct regular and irregular inspection of the observance of this circular's provisions by industrial explosives production and supply establishments. The Planning and Investment Department of the Ministry of Industry and the General Department of People's Police (C13) of the Ministry of the Interior shall act as the coordinating offices to assist the two ministries in monitoring and inspecting the observance of law provisions on the management of industrial explosives.

2. The inspection contents:

- The conditions on the material and technical bases.

- The conditions on the professional qualifications of the business doers.

- The production and business plans, economic contracts, export-import contracts, customs procedures for export and import.

- Purchase and sale prices, books of accounting, invoices and vouchers.

- Standards, samples and packings of industrial explosives and product weight.

- The observance of regime of reporting to the State management bodies.

- Security and order conditions.

3. Handling of violations:

All organizations, enterprises or individuals that violate the provisions on the management of industrial explosives shall, depending on the nature and seriousness of the violations, be administratively sanctioned or examined for penal liability.

4. If any organizations or individuals with competence to grant business eligibility certificates, security and order qualification certificates and business registration certificates and to inspect the operations of eligible business organizations commit acts of abusing their positions or power, they shall be disciplined or examined for penal liability, depending on the seriousness of their violations; if material loss is caused, compensation therefor must be made in accordance with the provisions of law.

VII. ORGANIZATION OF IMPLEMENTATION

1. Within 60 days from the date this Circular takes effect, all enterprises engaged in the production and/or commercial supply of industrial explosives shall have to reorganize their activities in strict compliance with the provisions of this joint circular before they are allowed to engage in the production and/or commercial supply of industrial explosives. Enterprises which are not qualified for operations under the provisions of this Joint Circular shall have to temporarily suspend their operations.

2. The ministers, the heads of the ministerial-level agencies and agencies attached to the Government and the Presidents of the People's Committees of provinces and cities directly under the Central Government shall, within their respective functions and powers, coordinate with the Ministry of Industry and the Ministry of the Interior in organizing the implementation of this Joint Circular.

3. This Circular takes effect 15 days after its signing and shall replace Joint Circular No.03-TTLB/NV-MT of June 11, 1981 of the Ministry of the Interior and the Coal Mines. Any problems arising in the course of implementation shall be reported by branches, localities and units to the Ministry of Industry and the Ministry of the Interior for consideration, settlement and proper amendments or supplements.

For the Minister of the Interior

Deputy Minister

Major General LE THE TIEM

For the Minister of Industry

Deputy Minister

HOANG TRUNG HAI